When it comes to helping younger generations understand the importance of saving and managing inheritances, there are several "silver bullets" that advisers can employ.
According to a panel of financial advisers, talking on the importance of intergenerational wealth planning, encouraging clients to "talk about it" is a crucial factor when it comes to managing money.
Speaking on the latest FTAdviser In Focus podcast to Simoney Kyriakou, senior editor of FTAdviser, a panel spoke of the importance to advisory firms of getting more young people into good savings habits, and reaching out across generations to help today’s less wealthy young become tomorrow’s well-off pensioners.
While there is no one easy way to solve the issue, Kay Ingram, director of public policy for LEBC, said there were several 'bullets' that could be employed to help advise across the generations.
She said: "Sharing lessons about money with your children is important. You need that intergenerational conversation between older and younger generations.
"It is important as advisers to have that conversation."
Effie Datson, global head of family office for Barclays Private Bank, said compounding had to be explained to younger generations.
"Compounding is one of the eight great wonders of the world. Who are we to argue with Einstein?" said Datson.
"Time is the great component in the compounding conversation [...] putting a little money away at a young age, continuing to do so in a habitual way, and then investing it wisely, is a winning strategy."
Fellow panellist Roy McLoughlin, associate director of Cavendish Ware, commented: "I think the ultimate silver bullet is to take something like the issue of compound growth, and put it out to every maths teacher in schools across the UK.
"And they need to make it relevant to real life."
To listen to the full podcast, click on the link above.
simoney.kyriakou@ft.com
